Local Option Sales Tax
;])utUljUl' Count'!
Board 0/ Supervijorj
COURTHOUSE
DUBUQUE, IOWA 52001-7053
DONNA L. SMITH
ALAN R. MANTERNACH
JIM WALLER
PHONE: 319-589-4441
FAX: 319-589-4478
August 15, 2000
The Honorable Terry Duggan
Mayor, City of Dubuque
50 West 13'" St.
Dubuque IA 52001
Dear Terry and Members of the Council:
Enclosed is information about the Local Option Sales Tax which has enraged the Dubuque County Board
of Supervisors. The letter from Gerald Bair, Director of the Iowa Department of Revenue, explains that
beginning this fiscal year, the Department is charging local jurisdictions for the cost of administering the
local option sales tax.
Also enclosed is a page from the proposed Administrative Rules implementing the fee, showing the
amount proposed for each community within Dubuque County.
Weare also distressed to learn that the interest earned from local option taxes reverts to the General
Fund of the State.
The Board of Supervisors intendS to communicate our dissatisfaction with this fee, which was authorized
during the last session of the legislature in House File 2545; a copy of the relevant section of that
legislation is also attached.
If you agree with our position, please write to us prior to our meeting of August 28 so that we can
include your remarks with our letters. Thank you.
Sincerely,
DUBUQUE COUNTY BOARD OF SUPERVISORS
Alan Manternach, Chairperson
City Manager's Office
50 West 13th Street
Dubuque, towa 52001-4864
(319) 589-4110
(319) 589-4149 FAX
Alan Manternach, Chairperson
Dubuque County Board of Supervisors
Dubuque County Courthouse
Dubuque, IA 52001-7053
Dear Alan:
Thank you for your letter of August 15, 2000 to Mayor Terry Duggan and the
Dubuque City Council in reference to the State of Iowa charging for administering
the local option sales tax,
The City of Dubuque does not support the collection of this fee by the Iowa
Department of Revenue. Further, we are concerned that the State of Iowa retains
interest earnings from money collected as part of the local option sales tax.
Sincerely,
AA
Michael C. Van Milligen
City Manager
MCVM/dd
cc Tim Moerman, Assistant City Manager
Barry Lindahl, Corporation Counsel
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Service
Pt.'ople
Integrity
Responsibility
Innov<ltion
Teamwork
:JJutu'jUl' County
Board of .s~per(l;dord
COURTHOUSE
DUBUQUE, IOWA 52001-7053
DONNA L. SMITH
ALAN R. MANTERNACH
JIM WALLER
PHONE: 319-58!H441
FAX: 319-589-4478
August IS, 2000
The Honorable Terry Duggan
Mayor, City of Dubuque
50 West 13th St.
Dubuque IA 52001
Dear Terry and Members of the Council:
Enclosed is information about the Local Option S.ales TllX.. 'Nhich has enraged the Dubuque County Board
of Supervisors. The letter from Gerald Bair, Dir~p\()roftheIowa Department of Revenue, explains that
beginning this fiscal year, the Department is chargjngjocaljurisdictions for the cost of administering the
local option sales tax.
Also enclosed is a page from the proposed Administrative Rules implementing the fee, showing the
amount proposed for each community within Dubuque County.
Weare also distressed to learn that the interest earned from local option taxes reverts to the General
Fund of the State.
The Board of Supervisors inte!!
during the last session of !!tel
legislation IS also attached.
mmunicate our dissatisfaction with this fee, which was authorized
e in House File 2545; a copy of!!te relevant section of that
If you agree with our position,
include your remarks with our Ie
'te to US prior to our meeting of August 28 so that we can
Thank you.
DUBUQUE COUNTY BOARD OF SUPERVISORS
~~
Alan Manternach, Chairperson
jh
encl. (3)
cc: City Clerk
01
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STATE OF
I
DEPARTMENT OF REVENUE AND FINANCE
GERALD D. BAIR. DIRECTOR
August 9, 2000
Alan Manternach, Chairperson
Dubuque County Board of Supervisors
Courthouse
Dubuque, Iowa 52001-7053
Dear Mr. Manternach:
Thank you for your letter of August 2, 2000 questioning the Department's
authority to charge local jurisdictions for the cost of administering local option
taxes.
The statutory authority allowing us to charge a fee to recover the cost of
administration relating to the collection and distribution of local option sales taxes
can be found in section 28 of House File 2545. The fee was authorized following
action by the Iowa General Assembly that reduced our agency's operating
budget by $587,000. In addition the Department of Management has under
funded our agency another $272,941 which are cost required to fund health
insurance and adjustments in salary cost. Therefore, recovering the cost of local
option sales tax is necessary in order to maintain our current level of operations.
The interest earned on monies collected from local option sales taxes prior to
distribution is accumulated in the state general fund. The interest is not part of
our operating budget. As you know, a large percentage of state general fund
monies are distributed to local government which would include a portion of
interest earned on local option sales tax monies.
I hope this information is helpful. Please do not hesitate to contact me if you have
questions or if you require additional information.
Sincerely,
G.D. Bair
Director
HOOVER STATE OFFICE BUILDING I FOURTH FLOOR I DES MOINES, IOWA 50319
lAB 7/26/00 NOTICES 137
REVENUE AND FiNANCE DEPARI'MENT[701](cont'd)
28-11 Masonville 0.62% 24.00 32-02 Armstrong 68.15% 813.09
28-13 Ryan 1.86% 72.32 32-03 Ringsted 31.85% 379.91
1t 28-22 Unincorporated 54.45% 2,118.26 32-04 Dolliver 0.00% 0.00
28-24 TOTAL 100.00% 3,890.02 32-05 Gruver 0.00% 0.00
32-06 Wallingford 0.00% 0.00
DES MOINES COUNTY 32-22 Unincorporated 0.00% 0.00
29-01 Burlington 60.51% 4,278.57 32-24 TOTAL 100.00% 1,193.00
29-02 Mediapolis 3.27% 231.19
29-03 West Burlington 7.25% 512.75 FAYmE COUNTY
29-04 Middletown 0.72% 50.78 33-01 Oelwein 29.17% 1,321.82
29-05 Danville 1.90% 134.46 33-02 Fayette 5.16% 233.67
29-22 Unincorporated 26.35% 1,863.25 33-03 West Union 10.44% 473.08
29-24 TOTAL 100.00% 7,071.00 33-04 Arlington 1.87% 84.54
33-05 Germonl 2.02% 91.71
DICKINSON COUNTY 33-06 Elgin 2.46% 111.25
30-01 Milford 12.50% 560.13 33-07 Fairbank 0.57% 25.72
30-02 Spirit Lake 24.00% 1,075.72 33-08 Hawkeye 1.78% 80.56
30-03 Arnolds Park 6.40% 286.99 33-09 Maynard 2.03% 92.14
30-04 Lake Park 5.81% 260.59 33-11 Randalia 0.32% 14.31
30-05 Okoboji 5.26% 235.96 33-12 SI. Lucas 0.65% 29.60
30-07 Orleans 3.22% 144.42 33-13 Wadena 0.87% 39.36
30-08 Superior 0.85% 38.24 33~14 Waucoma 1.05% 47.72
30-09 Terrill 2.16% 96.70 33-15 Westgate 0.79% 35.92
30-10 Wahpeton 2.91% 130.60 33-22 Unincorporated 40.82% 1,849.61
30-11 West Okoboji 1.49% 66.80 33-24 TOTAL 100.00% 4,531.01
30-22 U nincorporared 35.38% 1,585.86
) 30-24 TOTAL 99.98% 4,482.01 FLOYD COUNTY
34-01 Charles City 43.17% 1,545.49
DUBUQUE COUNTY 34-02 Nora Springs 7.67% 274.42
31-01 Dubuque 63.33% 7,188.27 34-03 Rockford 4.30% 154.07
31-02 Cascade 1.42% 161.19 34-04 Colwell 0.46% 16.33
31-03 Dyersville 3.69% 418.85 34-05 Floyd 1.79% 64.15
31-04 Epworth 1.38% 156.60 34-06 Marble Rock 1.88% 67.44
31-05 Farley 1.34% 152.00 34-07 Rudd 2.18% 78.14
31-06 Asbury 1.92% 217.94 34-22 Unincorporated 38.55% L379.96
31-07 Balltown 0.07% 7.46 34-24 TOTAL 100.00% 3,580.00
31-08 Bankston 0.03% 3.44
31-09 Bernard 0.12% 13.20 FRAN'KLIN COUNTY
31-10 Contralla 0.11% 12.10 35-01 Hampton 33.52% 953.27
31-12 Graf 0.08% 9.56 35-03 Sheffield 8.87% 252.26
31-13 Holy Cross 0.28% 32.14 35-04 Dows 0.67% 19.15
31-14 Luxemburg 0.25% 28.56 35-06 Coulter 1.89% 53.77
31-15 New Vienna 0.37% 42.36 35-07 Geneva 1.26% 35.94
31-16 Peosta 0.12% 14.04 35-08 Hansell 0.64% 18.20
31-17 Sageville 0.25% 28.32 35-09 Latimer 3.26% 92.65
31-18 Sherrill 0.13% 14.70 35-10 Popejoy 0.64% 18.15
31-19 Worthington 0.44% 49.52 35-22 Unincorporated 49.25% 1,400.62
31-20 Zwingle 0.08% 8.69 35-24 TOTAL 100.00% 2,844.01
31-21 Rickardsville 0.17% 19.45
31-22 Unincorporated 24.42% 2.771.62 FREMONT COUNTY
31-24 TOTAL 100.00% 11,350.01 36-01 Hamburg 13.29% 280.38
, 36-02 Sidney 12.78% 269.53
EMMET COUNTY 36-03 Tabor 9.08% 191.45
32-01 Estherville 0.00% 0.00
HF 2545 ... and making appropriations to certain state departments...
27 8 premiums for payment of workers' compensation claims shall be
27 9 assessed to and collected from state agencies from the
27 10 appropriations made to the state agencies.
27 11 Sec. 28. DEPARTMENT OF REVENUE AND FINANCE. There is
27 12 appropriated from the general fund of the state to the
27 13 department of revenue and finance for the fiscal year
27 14 beginning July 1, 2000, and ending June 30, 2001, the
27 15 following amounts, or so much thereof as is necessary, to be
27 16 used for the purposes designated, and for not more than the
27 17 following full-time equivalent positions used for the purposes
27 18 designated in subsections 1 through 3:
27 19 ............................................... FTEs 508.05
27 20 1. COMPLIANCE
27 21 For salaries, support, maintenance, and miscellaneous
27 22 purposes:
27 23 .................................................. $ 10,735,295
27 24 2. STATE FINANCIAL MANAGEMENT
27 25 For salaries, support, maintenance, and miscellaneous
27 26 purposes:
27 27 ...................................... - . . . . . . . . . .. $ 11,416,309
27 28 3. INTERNAL RESOURCES MANAGEMENT
27 29 For salaries, support, maintenance, and miscellaneous
27 30 purposes:
27 31 .................................................. $ 6,509,988
27 32 4. COLLECTION COSTS AND FEES
27 33 For payment of collection costs and fees pursuant to
27 34 section 422.26:
27 35 .................................................. $ 67,000
28 1 5. STATEWIDE PROPERTY TAX ADMINISTRATION
28 2 For salaries, support, and miscellaneous purposes:
28 3 .................................................. $ 75,000
28 4 The director of revenue and finance may charge a fee to
28 5 recover the direct costs of administration related to the
28 6 collection and distribution of a local sales and services tax
28 7 imposed pursuant to chapters 422B and 422E. The fee revenue
28 8 shall be treated as repayment receipts as defined in section
28 9 8.2 and shall be used to pay the direct costs of administering
28 10 chapters 422B ~nd 422E.
28 11 The director of revenue and finance shall prepare and issue
28 12 a state appraisal manual and the revisions to. the state
28 13 appraisal manual as provided in section 421.17, subsection 18,
28 14 without cost to a city or county.
28 15 Sec. 29. LOTTERY. There is appropriated from the lottery
28 16 fund to the department of revenue and finance for the fiscal
28 17 year beginning July 1, 2000, and ending June 30, 2001, the
28 18 following amount, or so much thereof as is necessary, to be
28 19 used for the purposes designated:
28 20 For salaries, support, maintenance, miscellaneous purposes
28 21 for the administration and operation of lottery games, and for
28 22 not more than the following full-time equivalent positions:
28 23 ..... ............................................. $ 8,288,814
28 24 ............................................... FTEs 117.00
28 25 Sec. 30. MOTOR VEHICLE FUEL TAX APPROPRIATION. There is
28 26 appropriated from the motor fuel tax fund created by section
28 27 452A.77 to the department of revenue and finance for the
28 28 fiscal year beginning July 1, 2000, and ending June 30, 2001,
28 29 the following amount, or so much thereof as is necessary, to
28 30 be used for the purposes designated:
28 31 For salaries, support, maintenance, and miscellaneous
28 32 purposes for administration and enforcement of the provisions
28 33 of chapter 452A and the motor vehicle use tax program:
28 34 .... ...... ........................................ $ 992,986
28 35 Sec. 31. SECRETARY OF STATE. There is appropriated from
29 1 the general fund of the state to the office of the secretary
29 2 of state for the fiscal year beginning July 1, 2000, and
29 3 ending June 30, 2001, the following amounts, or so much
29 4 thereof as is necessary, to be used for the purposes
29 5 designated:
http://www.legis.state.ia.us/GA/78GA/Legislation/HF /02500/
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08/1 4/2000